Congress gives the green light for the pension reform with the support of a large majority

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Congress gives the green light for the pension reform with the support of a large majority

As for the Basque parties, PNV voted in favor and EH Bildu abstained. This new system, which would enter into force on 1 April, with the exception of certain provisions, provides for increases in the maximum bases and premiums.

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The plenary session of the Spanish Congress of Deputies on Thursday approved, with the support of a large majority, the decree-law that includes the reform of the pension system. In particular, the PSOE, Unidas Podemos, Esquerra Republicana (ERC), PNV, PDeCAT, Coalición Canaria, Compromís, PRC, Teruel Existe and Más País voted in favour, while EH Bildu, Junts and Vox abstained and PP, Ciudadanos, Foro Asturias, the CUP and BNG voted against. A total of 179 votes in favour, 104 against and 61 abstentions.

Once the decree has been validated, it has also been approved to process the reform as a bill, thus allowing parliamentary groups to negotiate new amendments to the text.

The pension reform reached Congress with the approval of the European Commission and also of the trade unions. The new system focuses on increasing the system’s revenues to meet the financial hardship caused by the retirement of the so-called “baby boomers” in the 1930s and 1940s.

In a first speech in the House of Commons, the Minister for Inclusion, Social Security and Migration, José Luis Escrivá, defended what is the second part of the pension reform, which he believes “enables us to tackle the demographic challenge” through of a “set of balanced measures” that will ensure the “adequacy” of the system.

This new system, which would enter into force on 1 April, with the exception of certain provisions, provides for increases in maximum bases and contributions, improvements in minimum pensions and the introduction of a dual model for calculating pensions, which allows will offer to choose between the last 25 years of contributions or 29 years, omitting the two worst ones in this case.

Moreover, due to the new reform, the Social Security mutual employees will no longer have the possibility to contact the National Institute for Social Security (INSS) in case the public health service rejects their registration proposal.

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Source: EITB

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